Actual financial statements (rather than the simplified financial statements presented in the chapter) for Shoppers Drug Mart are presented in Appendix A at the end of this book.

Instructions

(a) What are the five financial statements that Shoppers Drug Mart includes in its financial statement package? Which ones were discussed in this chapter?

(b) Look at Shoppers Drug Mart's income statement (which it calls statement of earnings). Did its sales increase or decrease between 2012 and 2011? Did its profit (which it calls net earnings) increase or decrease between the two years? Are its sales and profit moving in the same direction (that is, both increasing or both decreasing)? If not, explain why not.

(c) Look at Shoppers Drug Mart's statement of financial position (which it calls balance sheet). Identify its total assets, total liabilities, and total shareholders' equity as at (1) December 29, 2012, and (2) December 31, 2011.

(d) Look at Shoppers Drug Mart's statement of changes in equity (which it calls statement of changes in shareholders' equity). What were the balances in its share capital and retained earnings accounts at the end of 2012? At the end of 2011? Do these amounts agree to the same balances reported in the shareholders' equity section of the statement of financial position?

(e) How much cash did Shoppers Drug Mart have at December 29, 2012? At December 31, 2011? Which financial statement(s) did you look at to answer this question?